Partner Center Find a Broker

Risk-taking persisted into the morning London session and commodities were broadly higher to boot, which allowed the comdolls to extend their gains. And among the comdolls, it was Aussie that emerged as the one currency to rule them all.

The risk-friendly environment wasn’t too friendly for the lower-yielding currencies, though, with the yen getting the worst of it.

  • French flash manufacturing PMI: 53.1 vs. 54.0 expected, 54.4 previous
  • French flash services PMI: 56.4 vs. steady at 54.3 expected
  • German flash manufacturing PMI: 55.9 vs. 56.3 expected vs. 56.9 previous
  • German flash services PMI: 53.9 vs. 52.2 expected vs. 52.1 previous
  • Euro Zone flash manufacturing PMI: 55.0 as expected vs. 55.5 previous
  • Euro Zone flash services PMI: 55.0 vs. 53.8 expected, 53.8 previous

Major Events/Reports:

Net positive Euro Zone PMI reports

Earlier today, Markit released the latest batch of PMI reports for Germany, France, and the Euro Zone as a whole. And the short of it is that they were mixed but positive overall.

Focusing only on the PMI report for the Euro Zone as a whole, manufacturing PMI eased from 55.5 to 55.0, which is a 19-month low. However, the reading is within expectations.

The Euro Zone’s services PMI reading, meanwhile, climbed to a four-month high of 55.0, beating expectations that it would hold steady at 53.8.

And according to anecdotal evidence gathered by Markit, “inflows of new orders also picked up, after having fallen to a one-and-a-half year low in May, registering the largest gain since April.”

Employment growth also ramped up, “with June seeing the largest payroll gain since January and one of the steepest rises seen over the past 18 years.”

There were also promising signs for inflation since “Companies sought to pass higher costs on to customers, pushing average selling prices for goods and services up at the fastest rate since February. The latest rise in prices was the third-largest in the past seven years.”

Commodities broadly higher

Commodities were broadly higher during the morning London, likely because of the Greenback’s overall weakness.

It should be noted, however, that the Greenback was actually mixed during the session. The fact still remains that the Greenback is currently the second biggest loser of the day (so far), though.

And for reference, the U.S. dollar index was down by 0.31% to 94.25 for the day by the end of the morning London session.

Precious metals were in the green, despite the risk-on vibes.

  • Gold was up by 0.05% to 1,270.90 per troy ounce
  • Silver was up by 0.55% to $16.415 per troy ounce

Oil benchmarks were also in positive territory, even as OPEC meets.

  • U.S. WTI crude oil was up by 1.46% to $66.50 per barrel
  • Brent crude oil was up by 1.85% to $74.41 per barrel

Base metals were also broadly higher.

  • Copper was up by 0.58% to $3.039 per pound
  • Nickel was up by 1.69% to $15,332.50 per dry metric ton

Risk-friendly ending in Europe

After a week dominated by risk aversion, Europe is apparently ending the week on an upbeat note since the major European equity indices were broadly in the green.

The risk-on vibes may just be due to bargain-buying. However, some market analysts also pointed to the Euro Zone’s net positive PMI reports, as well as strong demand for banking shares after 35 U.S. banks passed the first stage of the U.S. Fed’s stress test. Auto shared were in the pits, though, so trade-related fears haven’t fully abated yet.

  • The pan-European FTSEurofirst 300 was up by 0.79% to 1,500.39
  • Germany’s DAX was up by 0.55% to 12,580.57
  • The blue-chip Euro Stoxx 50 was up by 0.90% to 3,434.15

U.S. equity futures were also well-supported because of the risk-on vibes in Europe.

  • S&P 500 futures were up by 0.42% to 2,764.00
  • Nasdaq futures were up by 0.31% to 7,259.50

Major Market Mover(s):


The Aussie was the top-performing currency of the morning London session, thanks to rallying commodity prices and the risk-friendly vibes. Although it’s also possible that some AUD bears were covering their shorts. After all, the Aussie did have a rough time this week.

AUD/USD was up by 24 pips (+0.33%) to 0.7428, AUD/JPY was up by 48 pips (+0.59%) to 81.84, AUD/CHF was up by 27 pips (+0.36%) to 0.7354


The risk-friendly environment may have good for the higher-yielding Aussie, but it wasn’t too good for the lower-yielding currencies, with the safe-haven yen getting the worst of it.

Incidentally, the yen also happens to be the worst-performing currency of the day (so far).

USD/JPY was up by 27 pips (+0.25%) to 110.17, CAD/JPY was up by 31 pips (+0.38%) to 82.99, EUR/JPY was up by 39 pips (+0.31%) to 128.29

Watch Out For:

  • 12:30 pm GMT: Headline (+0.0% expected vs. +0.8% previous) and core (+0.6% expected vs. -0.2% previous) readings for Canada’s retail sales
  • 12:30 pm GMT: Canada’s CPI (+0.4% expected vs. +0.3% previous); read Forex Gump’s Event Preview
  • 1:45 pm GMT: Markit’s flash U.S. manufacturing PMI (56.3 expected vs. 56.4 previous)
  • 1:45 pm GMT: Markit’s flash U.S. services PMI (56.4 expected vs. 56.8 previous)